Thread regarding Saudi Aramco layoffs

Terminology regarding “Severance” pay and “Retirement Benefits” are quite different in U.S. Payroll. Focusing upon retirement eligible: Those fortunate enough to be on U.S. Payroll prior to 2010 who are now Grandfathered in on those terms today do very well with their Retirement Benefits. That of course is assuming they contributed more than their 9% match in their 401k where they invested steadily, sensibly and wisely. Combined with the old payroll RIP as part of their retirement benefits, those still around today have done very well in setting themselves up for retirement. If you factor in no destructive debt incurred, and living in Kingdom below their means, they have no worries.

An item which did change for old payroll, and negatively impacted many, because the laws in the U.S. allowed it, and is which is not grandfathered in, was the medical plan. It used to be global being both used in the U.S. and outside of the U.S. and it was lifelong for the employee and spouse. Now, it’s only available until Medicare eligible (65) and frankly not useful outside of the U.S. anymore at a much higher cost.

More profoundly than benefit package changes, which you accept when you onboard here regardless of what others have or had, is the work culture change. Previously, most but not all U.S. payroll employees earned and received a more equitable PMP rating, and a GC promotion opportunity was afforded based upon merit which was not at all uncommon every 5 or 6 years. The combined compounding effect of which was when you look back was incredible and still has a positive effect today. Being employed during that era compared to newly employed today is a paradox and over the long term it has a significant drain on the wealth opportunity within grasp, employee well being, job satisfaction and the attractiveness of the job. When many employees compare what it “was” to that which it “is” it’s a complete paradox.

Those under the old payroll system were also employed during an era of relatively low cost inflation. They also did not have as much “off camp” opportunities for destructive recreational spending and tended to instead be on camp pursuing their recreation where there were much more active and diverse self directed recreational groups to partake in, at low if not no cost for the whole family. Compared to today, it was simply a different era, different lifestyle and different opportunity which will likely never be seen again.

Never 2 million severance . People are severance (a much lower figure ) with cashing out a pension benefit (a much higher figure). Never mind aramco - companies just don’t want to pay benefits anymore - they ALL want to pass it on to welfare or individuals - welcome to the job world today . I suspect things will get bottom after the race to the bottom

It is hard to imagine that they were paying $2M severance package after 20 years of service!

Yes, not hard to imagine such. IMO there has been a slow erosion of benefits since... hmm, not really sure since when, but make no mistake, it is real. They either no longer need expats like they did or are unwilling to compensate them as they use to.

My severance package is 75% less than the pre Sep 2017 global payroll. After 20 years service it maxes at USD400K. I get almost nothing before 6 years and very little before 10. Note: Aramco has a habit of firing expats before they reach these milestones. The old deferred benefits package where the big severance deals originate, has been long dead.

Lots of things cut, from number of days paid holiday, extra repats for bachelors , access to healthcare outside JHAH (now you have zero choice), the pension payments (deferred benefits cancelled), end of service (drastically reduced and removed to practically zero for those with less than 3 years service) foreign currency protection removed, etc etc etc…

The seven figure severance packages depend on the number of years in the company. The severance benefits are completely different between those who completed 20 years of service and those who completed 30. The company matched savings plan is being offered in PIF companies within the kingdom, however most expats choose to steer away from it and send every single penny out of the kingdom as soon as it hits the account.

The global payroll that was introduced around 2014 was fantastic. I was doing some part time recruiting for my Dept. When we found quality people, the HR guys could offer them really good deals. In particular, there was a deferred benefits supplement which was a company matched program. Bit like the US company matched savings plan. Candidates got earnings estimates up to age 60 retirement. Combined with severance award, the final payment often was a few million dollars. I even remember meeting secretaries (as you do), and one girl telling me her final lump sum estimate was over a million bucks. Granted she was in her mid 20s but it was still a great package. Sadly Management made a hugely shortsighted decision and cut the payroll to bits. And they wonder why we can’t attract quality candidates anymore. People need an incentive to come here and leave good jobs at home. We had that incentive with the old global payroll. It’s such a pity it was slashed. Management reaps what it sows. They think there is a queue of high quality people lining up out AOC offices to come here. Sadly not the case. Ah yes, they really were the good (old) days. I miss them.

It started in 2013 when global payroll was introduced. Benefits were severely reduced. The quite good retirement benefits were replaced by a 15% of income per year & employee takes care of his own retirement. The company matching savings by employees was also terminated. Bad for newcomers!

Well I know of someone on the Sterling payroll from 2012 who takes home literally double my salary, despite being the same grade code. Some on the old US payrolls are sitting on healthy seven figure severance packages, for when the time comes.